U.S. lawmakers are facing significant hurdles in developing a comprehensive cryptocurrency bill that clearly defines the regulatory roles of agencies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This difficulty persists even after the successful passage of a law specifically addressing stablecoins during the summer.
As lawmakers endeavor to create legislation that would establish clear regulations for the crypto market and enhance client protection, Ohio Republican Senator Bernie Moreno has voiced his dissatisfaction with the recent bill discussions. Senator Moreno described the ongoing conversation regarding a bill to oversee the crypto industry as "somewhat frustrating."
Meanwhile, sources close to the legislative process have indicated that Democrats and Republicans are scheduled to meet on Tuesday, December 9, to continue these discussions.
Broader Bill Discussions Spark Concerns Within the Crypto Industry
During the Blockchain Association Policy Summit held in Washington, D.C. on Monday, December 8, Senator Moreno articulated his concerns about the ongoing deliberations concerning the content of a more comprehensive legislative package. The United States Senator emphasized the importance of avoiding the passage of a flawed bill simply to claim legislative achievement, stating, "I don’t want to push through a bad bill just to say we passed something." He further commented that "there is no better deal than a bad deal."
The following day, Senator Moreno announced his intention to engage in discussions with Democratic colleagues. When questioned by reporters about the purpose of this meeting, the Senator explained that the aim was to provide Democrats an opportunity to share their perspectives on the ongoing discussions. However, he expressed frustration, noting that their viewpoints over the past few weeks have been "pretty annoying."
In parallel, reports have surfaced indicating that the House and Senate are independently developing different versions of a market structure bill, which will eventually require reconciliation.
It is important to note that the House of Representatives approved its version of a bill in July. This legislation, known as the Digital Asset Market Clarity Act, or "Clarity" for short, was primarily focused on regulating the crypto ecosystem. Following its approval in the House, reports suggested that passing similar legislation in the Senate would present a greater challenge.
Addressing Senator Moreno's concerns regarding recent bill discussions, analysts have pointed out that the Senator is a member of the Senate Banking Committee. This committee holds a pivotal role in drafting its own version of a crypto market structure bill.
Under Republican leadership, the Senate Banking Committee has developed a draft bill that aims to delineate the jurisdictional boundaries between two key regulatory agencies in the crypto industry: the SEC and the CFTC. The draft also proposes introducing a new classification for ancillary assets, which would clarify which types of cryptocurrencies are not considered securities.
To facilitate these objectives, sources have suggested that the Senate Banking Committee should coordinate its efforts with the Senate Agriculture Committee. This recommendation follows reports from the previous month that indicated the Agriculture Committee had shared a draft law granting new authority to the CFTC. Both proposed bills will need to undergo a significant amendment process before they can be presented for voting during congressional hearings.
Uncertainties Cloud Upcoming Committee Markup Hearing
Given the existence of these two distinct bills, a reliable source has revealed audio from a recent meeting, indicating that Senator Tim Scott, the Republican Chair of the Senate Banking Committee from South Carolina, assured attendees at a "Crypto Christmas" event that a practical pathway exists to hold the committee's markup hearing on either December 17 or 18.
However, Senator Mark Warner, a Democrat from Virginia and also a member of the Senate Banking Committee, has expressed reservations, stating that it would be difficult to finalize the markup hearing before the upcoming holidays. Senator Warner conveyed this sentiment during a conversation with Eleanor Terrett of Crypto In America.
According to Senator Warner, the current delay is due to the pending receipt of guidelines from the White House concerning quorum and ethics matters. Crypto In America had initially provided insights into the expected timeline for the markup hearing.